Whether you're a passive investor, a co-pilot or a pilot, there are three key principles that universally apply to all investors, and which you should take into consideration before choosing to invest:

What are your objectives? ? What is your time horizon? ? What is your risk tolerance??

Understanding your objectives

"Entrepreneurs in particular are focused on growing their own businesses, and they generally know that they can get the best return on their investment in their own companies," says Warren Ingram, investment expert and founder of Galileo Capital.